Of the Following, _______________ Is a Method That Governments Use

question 41

Multiple Choice

Of the following, _______________ is a method that governments use to improve urban transportation.

• A) providing bicycle lanes on freeways
• B) making some public buildings and some communities accessible only by public transportation
• C) providing motorcycle lanes in the center of rail lines
• D) constructing light rail and expanded bus systems
• E) giving tax rebates to people who use only public transportation

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Definitions:

MPC (Marginal Propensity to Consume)

The proportion of an increase in income that is spent on consumption rather than being saved.

Government Purchases Multiplier

The ratio of change in aggregate economic output to a change in government spending, used to analyze the effect of fiscal policy on the economy.

Aggregate Demand

Total economic need for all goods and services within an economy, pegged at a designated price level during a chosen period.

Government Expenditures

The total amount of money spent by the government in a fiscal period, including spending on goods, services, and public projects.